Vermilion Cliffs Partners LLC
The following information is provided by EnergyNet. All inquiries on the following listings should be directed to EnergyNet. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.
The assets consist of three packages with total cash flow of over $2 million per month and are being offered as one package with the ability to bid on all or the specified portions.
The first package is comprised of operated and nonoperated interest in producing wells within the Midland Basin in Glasscock and Howard counties, Texas. Vermilion Cliffs' second package is located within the Delaware Basin and includes leasehold acreage, operated interest and midstream infrastructure in Culberson County, Texas. Lastly, Vermilion Cliffs is offering operated working interest in producing wells in Nolan County, Texas, within the Eastern Shelf of the Permian Basin.
Bids are due by 4 p.m. CST Dec. 13. For information visit energynet.com or contact the EnergyNet team:
- Cody Felton, vice president of business development, at Cody.Felton@energynet.com or 281-221-3042;
- Michael Baker, vice president of business development, at Michael.Baker@energynet.com or 972-898-5358; and
- Denna K. Arias, director of transactions and business development, at Denna.Arias@energynet.com or 832-403-3125.
Opportunity Highlights:
Package One - Glasscock and Howard Counties
- Operated Working Interest in 27 Wells:
- 100.00% Gross Working Interest / 76.447112% to 75.00% Net Revenue Interest
- 25 Producing Wells | Two Saltwater Disposal Wells
- Operator: Cinnabar Operating LLC
- Nonoperated Working Interest in One Well:
- 4.952362% Working Interest / 3.714272% Net Revenue Interest in the Quahadi #2 Well
- Operator: Trilogy Operating Inc.
- Current Average 8/8ths Production: 1,885 barrels per day (bbl/d) of oil and 3.259 million cubic feet per day (MMcf/d) of gas
- Six-Month Average Net Cash Flow: $1,868,353 per Month
- 18,995.00 Gross (10,780.00 Net) Leasehold Acres
Package 1 - Upside Potential (Provided by Seller)
- VCP Leasehold Has Nine Wolfcamp A Locations, 36 Wolfcamp B/C Locations and 36 Wolfcamp D Locations
- Additional 10,000-ft Laterals Possible With Offset Operator Cooperation
- Historic And Prolific Conventional Play That Represents A Major Upside Due To The Numerous Ordovician And Devonian Aged Structures On Vermilion's Midland Basin Position
- Several Prolific Fusselman Wells Have Been Drilled On And Around Vermilion's Acreage
Package 2 - Culberson County
- 2,275.00 Gross / Net Leasehold Acres
- 1,960.00 Gross / Net HBP Leasehold Acres
- 315.00 Gross / Net Undeveloped Leasehold
- Operated Working Interest in Five Wells
- 100.00% Working Interest / 80.00% to 75.00% Net Revenue Interest
- Operations in One Facility
- Four Producing Wells | One Saltwater Disposal Well
- Six-Month Average 8/8ths Production: 186,000 cubic feet per day of gas
- Hughes Kent Ranch #1 Saltwater Disposal Well
- Converted Barnett horizontal well to Saltwater Disposal
- Vermilion's existing infrastructure is sufficient to support future pad development
- Vermilion Gas Pipelines Access
- Vermilion's Pipeline Is The Only One In The Area, Making It Strategically Important To Nearby Culberson Operators Such As Apache, Carrizo and Chevron
- Vermilion Owned Gas Pipeline Was Built In 2007 And Has Plenty Of Available Capacity (Can Handle Up To 250 MMcf/d)
- Ties Into The Oneok System, Which Goes To Waha
- Can Also Tie Into The Energy Transfer Comanche Trail Pipeline 7 Miles To The North
Package 3 - Nolan County
- Operated Working Interest in 23 Wells:
- 100.00% to 49.50% Working Interest / 81.25% to 38.75% Net Revenue Interest
- 20 Producing Wells | Two Saltwater Disposal Wells | One Shut-In Well
- Operator: Cinnabar Operating, LLC
- Current Average 8/8ths Production: 51 bbl/d of oil and 228,000 cubic feet per day of gas
- 10-Month Average Net Cash Flow: $12,325 per Month
- 4,020.28 Gross (2,840.28 Net) Leasehold Acres
- 1,534.00 Net Undeveloped Acres
- 1,306.28 Net HBP Acres